In a newly released autobiography, titled Ithaki, the ex- leader Alexis Tsipras does not hold back while he reflects on the turbulent era during Greece's economic turmoil.
A Controversial Appointment
In Tsipras's account, he appointed the unorthodox economist Varoufakis to be the treasury head largely due to the latter's worldwide fame along with Varoufakis's very persuasive skills as a public orator.
“He was, in reality, more like a personality rather than an economist,” wrote Tsipras.
Conflicting Agendas
Tsipras alleges that Varoufakis possessed his own agenda that involved advancing Varoufakis's books as well as testing out his economic models on Greece rather than genuinely advocating its economic stability.
He noted how those talks to avoid bankruptcy became “not just a method of achieving improved terms for Greece. They became an experiment, a monumental opportunity to prove the validity of Varoufakis's ideas.”
Critical Negotiations
During tense discussions, Greece found itself perilously close to exiting the single currency area.
At stake lay not only Greece's future but also the harsh austerity policies demanded in exchange for rescue loans by international creditors.
Unsuccessful Alternatives
Attempts to find funds elsewhere, including a desperate plea to Russia to purchase Greek bonds, went unanswered.
Helping the indebted country was equivalent to throwing money in the trash-can, the Russian leader reportedly told Tsipras in Moscow.
Referendum Followed by U-Turn
In July 2015, the punitive bailout terms were subjected to a popular referendum, a move which threw the EU into deeper crisis of identity.
Although the vote was carried resoundingly by those against the cuts, the prime minister had little option to reject its outcome then negotiate a bailout package with foreign lenders that proved to be more severe.
Final Straw
Tsipras claimed how he started questioning his finance minister quite early on.
“He was the face of negotiation, the figure who attracted media attention, who graced the covers of publications the world over … it seemed he was enjoying the spotlight.”
After Varoufakis outlined a contingency plan involving establishing a secondary currency as well as issuing vouchers to pensioners, the leader said he realised that it was game over and asked Varoufakis: “Are you serious?”
Lasting Rebuke
Within the book, Tsipras asserts how his former ally had proved himself to be “unfit for a deal demanding complex and sensitive management.”
Tsipras also wrote how his confrontational approach left him increasingly isolated among peers, endangered the country, and assisted hawks that were advocating Grexit.
The account of events has been met with anger and shock in some quarters, whereas Varoufakis has so far kept a conspicuous quiet on the matter.
